`UTI MF stake sale not to harm investors'

THE stake sale of UTI Mutual Fund to one or all of its current sponsors is not likely to affect investors' interest, the Chairman of UTI AMC, Dr R.H. Patil, said.

"The stake sale is a matter for the Government. As it has invested substantially in the AMC, it now wants to collect on the amount. UTI is a profit making venture, it is a hot property now," Dr Patil said.

As, among the current sponsors, LIC, SBI and PNB have their own asset management companies, if UTI is bought by any of these, SEBI will come out with regulation to ensure that there is no conflict of interest between their existing mutual fund business and that of UTI's, he added.

Dr Patil also confirmed that UTI AMC is interested in being a player in the pension fund business, once the regulations are clear.

he AMC is ready with its product offerings and as and when the final regulations are in place, these would be tweaked and announced, he said.

Dr Patil was speaking at the inauguration of UTI's new financial centre in Powai, in Mumbai. In a bid to expand its distribution network, the fund house plans to open 12 centres this year.

"Small investors have always been our strength. We have decided to have multiple UTI Financial Centres in all metros and mini metros," said Mr D.S. R. Murthy, Executive Director, UTI AMC.

Currently, the AMC plans to open branches in centres such as Mumbai, Delhi, Chennai, Kolkata and Bangalore.

The AMC is targeting a growth rate of 30 per cent this year, according to Mr A.K. Sridhar, Chief Investment Officer, UTI AMC.

(This article was published in the Business Line print edition dated July 26, 2005)

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